The company behind Pepkor, PEP, Ackermans and OK Furniture says it plans to launch the new lender in April 2027, targeting 1.8 million primary banking customers within five years.
The move signals a major shift in South Africa’s retail and banking sectors, where retailers are increasingly moving into financial services to unlock higher-margin revenue streams and build deeper relationships with cash-strapped consumers.
Pepkor wants to use its enormous physical footprint as a competitive advantage. The retailer operates more than 6,500 stores across southern Africa, giving it one of the widest distribution networks in the region.
Executives say customers will be able to access banking services both digitally and physically through Pepkor’s stores, creating a hybrid model aimed at consumers who remain underserved by traditional banks.
That matters because South Africa’s banking industry, despite being one of the continent’s most advanced, is still dominated by a small group of powerful lenders including Standard Bank, FirstRand, Absa Group and Nedbank.
